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J
JS1000
January 26, 2022
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New Small Business (Single Member LLC) - How to Categorize Expensive Data License

  • January 26, 2022
  • 1 reply
  • 0 views

Hi,
I recently started my own small business (a single member LLC) to provide data analysis and consulting services to clients.  My biggest expense, by far, is purchasing a large set of data.  Technically, I purchase an ongoing license to access the data set.  This expense is more than $25,000 every quarter.  How do I categorize this expense?  So far, I have been categorizing it as 'Legal and Professional Services'?  Is this correct, or should I be putting it in a different category?  
Thank you in advance for your help!
Sincerely,
Joel

    Best answer by MinhT1

    Your single-member LLC is a disregarded entity for tax purposes and you can file a Schedule C for your LLC on your personal joint tax return.

     

    Yes, you can categorize these expenses as Legal and professional services.

    1 reply

    M
    MinhT1Answer
    January 26, 2022

    Your single-member LLC is a disregarded entity for tax purposes and you can file a Schedule C for your LLC on your personal joint tax return.

     

    Yes, you can categorize these expenses as Legal and professional services.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
      J
      JS1000Author
      January 26, 2022

      Thank you -- that is very helpful to confirm!

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